Bank of England boss Andrew Bailey hints at more rate cuts
The Governor of the Bank of England told MPs the prospect of an interest rate cut within weeks is ‘a genuinely open question’.
Andrew Bailey said it would have been ‘rather premature’ to cut rates earlier this month without evidence that underlying inflation pressures are fading.
At that time, he cast the deciding vote in a narrow 5-4 decision to leave interest rates on hold at 3.75 per cent.
But since then, figures showing a rise in unemployment and stuttering economic growth have added to pressure to act.
Cautious: Bank of England Governor Andrew Bailey said it would have been ‘rather premature’ to cut rates earlier this month
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Bailey yesterday told the Treasury Select Committee that a fall in inflation to its 2 per cent target in April was ‘pretty much baked in’ with energy bills set to fall.
He said: ‘I do think there is scope for some further easing of policy during most probably the course of this year.
'At the moment – we’re still a little way off the next meeting – it is a genuinely open question.’
The Bank’s next rate-setting decision takes place on March 17, when markets see a 70 per cent chance of a rate cut to 3.5 per cent.
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